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What do you want to know? Information acquisition and learning in experimental Cournot games

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  • Bigoni, Maria

Abstract

This paper presents an experiment designed to study firms' behavior and market dynamics, when information about the market structure and opponents' actions is difficult to acquire and process. Our experimental software controls the information acquisition process of the subjects. Paying attention not only to what players do, but also to what they know, it is possible to better understand the cognitive processes guiding their choices and, consequently, the impact of the informational structure on their behavior. According to our results, Best-Response Dynamics is the main component of subjects' learning process. We also find that, when subjects look at the strategies individually adopted by their competitors, they tend to imitate the most successful behavior, which drives the market towards a more competitive outcome.

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  • Bigoni, Maria, 2010. "What do you want to know? Information acquisition and learning in experimental Cournot games," Research in Economics, Elsevier, vol. 64(1), pages 1-17, March.
    • Handle: RePEc:eee:reecon:v:64:y:2010:i:1:p:1-17
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    Cited by:

    1. Buckert, Magdalena & Oechssler, Jörg & Schwieren, Christiane, 2017. "Imitation under stress," Journal of Economic Behavior & Organization, Elsevier, vol. 139(C), pages 252-266.
    2. Francesco Fallucchi & Jan Niederreiter & Massimo Riccaboni, 2021. "Learning and dropout in contests: an experimental approach," Theory and Decision, Springer, vol. 90(2), pages 245-278, March.
    3. Bigoni, Maria & Fort, Margherita, 2013. "Information and learning in oligopoly: An experiment," Games and Economic Behavior, Elsevier, vol. 81(C), pages 192-214.
    4. Huck, Steffen & Jehiel, Philippe & Rutter, Tom, 2011. "Feedback spillover and analogy-based expectations: A multi-game experiment," Games and Economic Behavior, Elsevier, vol. 71(2), pages 351-365, March.
    5. Till Requate & Israel Waichman, 2011. "“A profit table or a profit calculator?” A note on the design of Cournot oligopoly experiments," Experimental Economics, Springer;Economic Science Association, vol. 14(1), pages 36-46, March.
    6. David Kopanyi & Anita Kopanyi-Peuker, 2015. "Endogenous information disclosure in experimental oligopolies," Discussion Papers 2015-11, The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham.
    7. Mignot, Sarah & Tramontana, Fabio & Westerhoff, Frank H., 2023. "Complex dynamics in a nonlinear duopoly model with heuristic expectation formation and learning behavior," BERG Working Paper Series 187, Bamberg University, Bamberg Economic Research Group.
    8. Bigoni, Maria & Suetens, Sigrid, 2012. "Feedback and dynamics in public good experiments," Journal of Economic Behavior & Organization, Elsevier, vol. 82(1), pages 86-95.
    9. Jan Potters & Sigrid Suetens, 2013. "Oligopoly Experiments In The Current Millennium," Journal of Economic Surveys, Wiley Blackwell, vol. 27(3), pages 439-460, July.
    10. Bigoni, M. & Suetens, S., 2010. "Ignorance is not always Bliss : Feedback and Dynamics in Public Good Experiments," Discussion Paper 2010-64, Tilburg University, Center for Economic Research.
    11. Jan Niederreiter, 2023. "Broadening Economics in the Era of Artificial Intelligence and Experimental Evidence," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 9(1), pages 265-294, March.

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